Hiring scaffolding? Avoid hitches!

Would it surprise you to know that hire contracts for scaffolding commonly require the builder to accept full responsibility for loss, theft or damage to it? BuiltIn expert Ben Rickard explains more

Hire contracts may require you to insure the scaffolding during the hire period. So, if you haven’t taken cover out via the hirer, then you’ll need to arrange your own insurance while it’s in your care. Here’s an example of the wording you might encounter:

The hirer agrees to accept full responsibility for the safekeeping of the equipment and indemnify the hire company for all loss, theft or damage to the equipment, however caused, whether or not such loss, theft or damage is caused by any negligence, failure or omission of the hirer. The hirer agrees to insure the equipment against loss and damage during the hire period and provide evidence of such insurance to the company upon request.

How can you comply with this requirement?

Within most contract works insurance policies there’s an optional extension to add cover for hired or borrowed equipment, including scaffolding. As it’s an optional extension, you need to ask for it and it will come with an additional premium.

If you have your own material damage or mobile assets policy covering your contents, tools and equipment, that policy will also commonly include cover for hired items. 

In both cases, the policy limits must be sufficient to cover the replacement of the scaffolding if a claim needs to be made.

Shouldn’t my liability insurance cover this?

General/public liability policies include cover for property in your care, custody or control, but only if you would be legally liable for its loss or damage anyway. You’re not covered for any additional “contractual liability” contained in the hire contract. 

For example, if your own actions damaged the scaffolding then you’d be liable in law and it should be covered by your liability insurance. But, if it was damaged in an earthquake, you wouldn’t be legally liable for that, so your liability insurance wouldn’t cover it, even though you had contractually agreed to be responsible for loss or damage “however caused”.

In a nutshell

If you’re hiring scaffolding, make sure you know what the terms and conditions of the agreement are and if you’re responsible for insuring it. 

The information presented in this article is general in nature and not intended to be financial advice for individual situations. You should speak to an expert about your specific circumstances and needs. For more information visit builtininsurance.co.nz